What is TPAR?
TPAR reporting was developed by the Australian Taxation Office to prevent contractors from either not reporting or underreporting their income.
Businesses and government entities who make payments to contractors may need to report these payments and lodge a Taxable payments annual report (TPAR) to the ATO by 28 August each year.
Contractors can include subcontractors, consultants, and independent contractors. They can operate as sole traders (individuals), companies, partnerships, or trusts. Payments to employees are not included in TPAR.
What businesses are required to lodge TPAR?
There are several business types required to lodge TPAR however it’s important to be aware of some of the different scenarios around when reporting is required. Click any of the items in the following list to take you to read more about which services are considered to belong to the business type, examples of those services, and other specific information about income derived from the particular service. You can also find out what payments are included in TPAR.
- Building & construction services
- Cleaning services
- Courier services
- Information technology services
- Road freight services
- Security, investigation, or surveillance services
Record keeping
It’s important to ensure you have all the information you need to be able to accurately report. Information required will include:
- Contractor name
- Contractor address
- Contractor Australian Business Number (ABN)
- The amount you paid the contractor, including goods and services tax (GST)
If you’re using accounting software, check with your advisor to ensure it is set up correctly to be able to record and report TPAR. If you’d like some help determining if you have to lodge, or need help to lodge, please contact us and we will be more than happy to assist.
If you don’t need to lodge TPAR
For those not needing to lodge TPAR you can lodge a TPAR non-lodgement advice. You can obtain more information on non-lodgement advice here.
